Earnings before Interest and Taxes, abbreviated as EBIT. It is a term that refers to financial result before interest and taxation. It assesses business performance regardless of the chosen method of financing (interest) and taxation.
Calculation: EBIT = EBT + Interest Cost
Use of EBIT in practice: in a business it is used by CFO in financial analysis to analyze ratios. This indicator is preferred for its complexity by investors.
Comments
You cannot contribute to the discussion because it is locked